Wage theft is a serious problem in California and growing at an alarming rate.
Wage theft occurs when an employer denies wages or benefits rightfully owed to an employee. There is no typical offending employer. Companies engaging in wage theft range from small employers to large corporations with thousands of employees, throughout all industries.
Victims are often the most vulnerable members of society who need their wages the most to meet basic human needs. Employment law infractions are usually not isolated; they tend to occur throughout an organization.
According to a Los Angeles County study, low-wage workers represented almost one-fifth of the county’s total workforce. Of these 744,220 low-wage workers, 30 percent, or nearly 250,000 workers, were illegally being paid less than minimum wage.
Another study found that 80 percent of low-wage workers who qualify for rest or meal breaks are not allowed their full break time or are not given breaks at all. These violations cost the wage-theft victim—who is already at the lowest end of the wage scale—an average of over $2,000 per year, or 12 percent of their $16,536 annual income.
Wage theft can occur through various means, such as:
- Failure to pay overtime
- Failure to pay the required minimum wage
- Employee misclassification as being salaried or an independent contractor
- Illegal deductions in pay
- Charging employees for required job-related items
- Working off the clock
- Not being paid at all for hours worked